How to Avoid Bank Charges on International Transactions
To avoid bank charges on international transactions, you should use a different bank. Use another bank to avoid bank charges on international transactions.
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By Victor | Temo.name.ng | 4 min read
There's that Saturday when I sat down with my bank statements and did the math correctly for the first time. I had billed a customer $1000. When the cash arrived in my naira account, I had gotten used to paying fees that I never signed up for, and I had already lost almost $90. It was on that day that I made the decision to no longer consider international bank charges as an inevitable reality. Well, here are a few things I learned since and what you can do about them.
Be aware that the fee is often not a fee. If a client funds you with $1,000 through SWIFT, the funds will go through many hands. These may be subject to a charge by the client's bank. An intermediary correspondent bank located in the United States or Europe removes $15–$25 before the money arrives in Nigeria. Your Nigerian bank will then deduct its own receiving fee, typically $10-$25. When the dollars arrive, you're already behind. However, it's at conversion where the real damage is done.
The biggest killer is the exchange rate spread. This is what we miss out on. The actual exchange rate for the CBN could be ₦1500 per dollar, but you will get your money down at ₦1425 or less by your bank. That spread, which is 5% or more at times, is pure profit for the bank, and it's nearly undetectable unless you follow rates on a daily basis. The spread alone for a ₦1,000 invoice is ₦75,000 or higher. The lesson I learned the hard way—never let your bank convert automatically! Keep your dollars in a domiciliary account till you need naira.
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Understand the actual changes wrought by the CBN. The Central Bank of Nigeria (CBN) updated its Guide to Charges in May 2026. Maintenance charges of naira debit and credit cards were eliminated. Electronic transfers of up to N5,000 now are free; transfers between N5,000 and N50,000 cost N10; and transfers over N50,000 cost N50. These are domestic fees, not international fees, but they are important because they make it clear that the regulator is at least aware of the importance of fee transparency. However, for foreign currency cards there is still an annual membership fee of $10. Review statements—you might be paying for a card you seldom use.
The new best friend is the 2026 Foreign Exchange Manual. The CBN's new manual, which went into effect on June 1, 2026, provided "unfettered and unrestricted access" for ordinary domiciliary account holders to their foreign currency balances. The outbound remittance rule for self-funded domiciliary accounts was lifted. Now, it is possible to send telegraphic transfers up to $10,000 per day without having to provide all the necessary documentation. What does this imply for you? It means that you have more money control than you had two years ago. You are not compelled to change into the rate your bank offers. Wait, hold, convert on your own terms.
Make a conscious selection of your rails. Up to now, Payoneer is the platform default for Upwork and Fiverr, but the costs don't come cheap; there is a 2% withdrawal fee to your domiciliary account in Nigeria and the spread they add when they convert to naira. Wise uses the mid-market rate with a clear fee; however, its functionality for Nigerians is restricted, as balances can't be kept there, only deposited directly to your local bank. Grey has gained popularity as it's aligned to parallel market rates, where you will get a lot more naira for your dollar compared to the traditional banks. Payoneer: Marketplace clients; Grey: Direct clients who want to pay in USD. The most important thing is not to use only one channel.
Be on the lookout for windows with no cost and take advantage of them. The PAPSS Zero-Fee Outbound Campaign is a service by Access Bank that enables customers in Nigeria to make outbound transfers of naira to other African countries without having to pay any outbound transfer charges. All of these promotions are genuine, but they change. Before transferring funds overseas, take five minutes to see if your bank is running a promotion on their account. It sounds trivial. It is not.
One other tip I wish I knew earlier. Generally, when you're shopping online abroad, always opt to be billed in the merchant's local currency, not in naira. Dynamic Currency Conversion may seem like a convenient method, but almost always the rate they provide is worse than your card provider would use. This is one saving habit that has saved me thousands of naira in just one year.
All this doesn't wipe out all charges. Intermediary banks will still retain a cut. They will still be available as FX spreads. When combined, these practices help you to keep the money in its rightful place by holding onto dollars, picking the right platforms, and being mindful about regulatory shifts and promotions. In my pocket. And yours.
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Victor writes about money, technology, and the real-life economics of doing business in Nigeria. He feels that it's a small print comprehension that keeps more money in your pocket. More at temo.name.ng.
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